A business continuity plan protects companies from the
slowing or shutting down of business processes when disaster strikes. Discover
the essential components of a BCP.
What Is the Definition of a Business Continuity Plan?
A business continuity plan (BCP) is a plan for a company to
avoid or recover from potential threats that disrupt normal business
operations. Natural disasters, pandemics, and cyberattacks are among the
threats. In the event of a disaster, a company's business continuity plan
ensures that both employees and resources are safe and able to function
normally.
A BCP is a critical component of a company's risk management
strategy. When a disaster strikes, business disruption is costly to an
organization's finances, disrupting normal operations and potentially resulting
in financial losses if customers turn to competitors. Insurance rarely covers
these losses, so developing an effective business continuity plan is essential
for both large and small businesses.
IT™s Role in Business Continuity
A company's information technology (IT) department is
typically in charge of assembling a business continuity team to develop its
BCP. Members of the team work with business partners and stakeholders to
conduct a risk assessment for all potential business vulnerabilities; they may
also consult BCP templates or BCP standards established by the International Organization for Standardization (ISO).
When potential threats are identified, the planning process
investigates how they might impact critical business functions; the team then
develops strategies to mitigate their impact. They also conduct regular
walkthroughs and tabletop exercises to ensure that the BCP's recovery
strategies remain effective.
Despite the fact that both business continuity plans and
disaster recovery (DR) plans address emergency situations, the BCP is an action
plan for all business processes at a company. A disaster recovery plan is
primarily concerned with recovery procedures for a company's IT systems.
Key Elements of a Business Continuity Plan
A business continuity plan contains several key components.
These are some examples:
Business impact analysis: The BIA is a critical
component of any business continuity plan because it assesses how business
disruption affects a company financially. Physical damage to buildings and
office space, data centers, and equipment, supply chain disruption, regulatory
fines, and the absence of key personnel are all covered by the BIA. The costs
of recovery efforts in the BCP are then compared by stakeholders.
Checklist: In the event of a disaster, the business
continuity plan team leader must have access to a hard copy checklist of personnel
and provider contact information. An emergency contact list for key personnel,
cell phone numbers for responders, emergency services, data backup sites, and a
list of supplies and equipment are all part of these vital records.
Emergency management: A company's BCP should include an
emergency management plan in addition to the disaster recovery plan. An
emergency management plan, also known as an emergency response or disaster
management plan, is a document that outlines the company's procedures for
minimizing the human impact of an emergency situation. This includes measures
to protect property and personnel from physical harm, such as evacuation
procedures.
Recovery strategies: Any BCP must also include a
step-by-step breakdown of the company's recovery plan. The breakdown includes
the first stage of the emergency response, when team members initiate the plan,
as well as the establishment of alternate locations for staff and human
resources. Once in place, the team monitors recovery efforts using two
objectives: recovery time objective (RTO), which is the amount of downtime
allowed for IT systems, and recovery point objective (RPO), which is the time
frame for which a company can withstand data loss.
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